Our team has been investing in securitised products and asset-based finance since the inception of the asset class.
Through a combination of proprietary top-down macroeconomic analysis and bottom-up insights we identify compelling investment opportunities across the spectrum of mortgage-backed securities (commercial and residential), asset-backed securities and asset-related private debt. We invest on a global basis and across the capital structure, according to our clients’ risk appetite, and always cognisant of evolving market conditions.
We make extensive use of data and proprietary analysis to identify opportunities for excess returns, particularly in complex markets or those where there are inefficiencies resulting from regulatory or structural change.
We have developed proprietary systems over several economic cycles to enable us to identify and compare our best investment ideas among cashflows with similar risk profiles. These systems include custom datasets, financial models, and portfolio construction tools.
We invest heavily in publicly-available and proprietary data to provide a framework for helping us analyse securities and loans, accumulating an extensive historical dataset which allows us to identify patterns and inform future decisions.
Our approach enables us to be flexible and opportunistic, reacting to changing market environments.
ESG factors are central to the team’s research to ensure a thorough review of governance, fair lending, loan health for consumers, and a consideration of other key factors, such as location with respect to climate and well-being. The evaluation of ESG factors complements the assessment of the quality of the collateral and the sustainability of the cashflows.
With strong local footprints across the globe, our investors trust us to source what we consider the most sought-after investment opportunities.
Volatility risk: The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.
Liquidity risk: There may be very limited liquidity available via the secondary market of the proposed Fund given the underlying private credit assets and investors should consider an investment only if they intend to hold it for the life of the proposed Fund. Liquidity of the underlying investments might not be sufficient to meet investor subscription and redemption requirements.
Interest rate risk: A rise in interest rates generally causes bond prices to fall.
Credit risk of underlying issuers/lenders: A decline in the financial health of an issuer/lender can cause the value of its bonds/ loans to fall or become worthless.
Currency risk: The fund can be exposed to different currencies. Changes in foreign exchange rates could create losses.
Counterparty risk: The counterparty to a derivative or other contractual agreement or synthetic financial product could become unable to honour its commitments to the proposed fund, potentially creating a partial or total loss for the proposed fund.
Derivatives risk: A derivative may not perform as expected, and may create losses greater than the cost of the derivative.
Concentration risk: The proposed Fund may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the fund, both up or down, which may adversely impact the performance of the fund.
Gearing risk: The proposed fund may borrow money to invest in further investments. Gearing will increase returns if the value of the investments purchased increase in value by more than the cost of borrowing, or reduce returns if they fail to do so.
Valuation risk: The underlying private credit assets may be subject to inadequate pricing reliability. In addition, property-based vehicles invest in real property, the value of which is generally a matter of a valuer’s opinion.
Industry/country risk: Legislative changes, changes in general economic conditions and increased competitive forces may affect the value of investments. Additional risks may include greater social and political uncertainty and instability and natural disasters.
Infrastructure asset risk: Infrastructure assets expose investors to additional risks, in particular construction risk (e.g. construction delays, cost overruns, etc.) and deployment risk (e.g. capital being deployed in several instalments during construction period rather than upfront for brownfield investments).